Spotify subscriptions 'significantly cheaper' with Virgin
Since Spotify decided to limit the amount of time you could spend listening to tunes, with the addition of the '5 listens only' rule, we imagine their traffic has dropped considerably, with many saying "Oh well, back to torrents then."
However, the future of Spotify (pronounced 'Spodify' it seems) could lie in deals with other companies, like the one just announced by Virgin Media.
Virgin Media's CEO - Neil Berkett - says that the company will bundle Spotify with broadband services for a “very, very low monthly subscription”.
At the moment, Spotify charges £9.99 for the premium service. Berkett says that Virgin will “bundle it in to our broadband for significantly less than that.” No prices have been announced, but this is potentially very good news for both parties.
“(The deal) was spawned from a transaction we tried to do two years ago,” Berkett said, adding, “it’s hard for ISPs to work with the content industry sometimes."
"With Spotify, we had to sign a deal with each of the music labels. The reason they (labels) did it is, we’ll be more forceful when it comes to piracy. It’s the right thing to do to create digital confidence from our suppliers and customers."
And it seems that it could be films next.
“I’d like to do the same thing in movies but somebody has control of the rights window,” Berkett said, pointing at Sky Movies’ control over premium subscription rights - something which also prohibits Lovefilm from offering a digital subscription. This is something that UK competition authorities are currently investigating.
This is a smart move from Virgin who need to get back in the game after they lost 36,000 customers in the last quarter.